Liverpool has been a town since 1207, when it was granted its first charter by King John. It has had a town corporation (the Corporation of Liverpool) since before the 19th century, and this was one of the corporations reformed by the Municipal Corporations Act 1835. The corporation created a police force in 1836.

Liverpool was granted city status in 1880. When local government was reformed in 1888 under the Local Government Act 1888 it was one of the cities to become a county borough, and thus independent of Lancashire. This situation persisted until 1974 with the Local Government Act 1972, when due to urban expansion and the accretion of a large metropolitan area, the city was made a metropolitan district of the metropolitan county of Merseyside. This saw the old corporation nomenclature abolished and the council reconstituted as Liverpool City Council.

In 1986 the council of Merseyside was abolished and its functions devolved to its districts, but the county still legally exists. Liverpool has never been a district council under Lancashire County Council.

In the late 1970s the City was run by the Liberal Party under Sir Trevor Jones. As part of their plans, a cost-cutting exercise was drawn up, to reduce the council's costs by 25%. In 1979 the Conservative Party won the General Election. The new government intended to cut council spending but Liverpool City Council successfully negotiated an exception from this, on the grounds that they were already following government policy and cutting 25%.

During the 1980s, the TrotskyistMilitant group gained control of Liverpool's Labour Party and the council, and attempted to challenge the national government on several issues including refusing to set a budget in 1985. The council then adopted a 'deficit budget' in which spending exceeded income, causing a financial crisis. The leadership of the Labour Party was drawn into the controversy, culminating with Neil Kinnock's speech to the Party Conference in 1985, denouncing Liverpool City Council without explicitly naming it. Derek Hatton, councillor for Netherley ward and Deputy Leader of the Council, shouted "lies" at the platform, and Eric Heffer, MP for Liverpool Walton constituency, left the conference platform.[2]

The Labour Party ultimately succeeded in expelling members of Militant, and Hatton himself was expelled from the Labour Party in June 1986.[3]

2005 Liverpool Culture Company is established to deliver city's 800th anniversary in 2007 and European Capital of Culture in 2008.

2005 in November Lib Dem leader of the Council Mike Storey resigns after eight years following accusations of plotting to try to engineer departure of Council's Chief Executive, Sir David Henshaw.

2005 Cllr Storey was replaced as leader by Warren Bradley. Sir David Henshaw retired and was replaced as chief executive by Colin Hilton.

2005 Liverpool City Council issue a formal apology for the flooding of Capel Celyn, near Bala, North Wales. The community was destroyed and the land flooded to create Llyn Celyn in 1965. The reservoir was solely created to supply water to Liverpool and Wirral.

2008 Liverpool officially launches its year as European Capital of Culture on 11 January with a "people's party" outside St George's Hall, attended by more than 40,000 people. On 12 January the Liverpool Echo Arena, which is owned by the council, was officially opened with a concert featuring Liverpool music bands past and present.

2008 Council awarded 1 star by Audit Commission.

2008 Liberal Democrats lose overall control of city on 1 May in local elections, however a midnight defection of an Independent (Former Labour) Councillor gives them a majority of 1.

2008 Green Party take second seat in St Michael's ward, becoming a recognisable "group" on the council.

2019 Labour lose 2 seats to the Liberal Democrats and 1 to Liberal Party. As polls close Councillor Ann O'Byrne, Deputy Leader of the Group, posts motion to rescind directly elected Mayoral model. Motion is not voted at party AGM, but party agrees to hosta review of the structure. Councillor O'Byrne loses vote to remain as Deputy Leader, which is won by Councillor Wendy Simon.

2019 Liverpool City Council is chosen as the UK's No1 event organiser - and the only council to feature in World's top 30 list of the EventEx Awards.

The Chief Executive, Ged Fitzgerald, was arrested in May 2017 on suspicion of conspiracy to pervert the course of justice and witness intimidation related to investigations into One Connect, an organisation he helped to set up when he worked for Lancashire County Council which is similar to Liverpool Direct, a partnership between the council and BT Group.[7] Mr Fitzgerald resigned from his role in May 2018.

In August 2018 a case file of evidence gathered on Mr Fitzgerald and two other ex-council executives was handed to the Crown Prosecution Service.

The Lord Mayor of Liverpool is the first citizen and chosen representative of the city, acting as a focal point for the community as well as promoting the city. The Lord Mayor's main responsibilities includes meeting delegates from twinned cities, chairing council meetings and representing the city. The Lord Mayor of Liverpool is always a serving councillor, elected by the full council at its Annual General Meeting held each May, and serve for a term of one year: the current Lord Mayor is Councillor Christine Banks.

Elections are usually by thirds, in three of every four years. 2004 saw new boundaries and a reduction in the number of councillors from 99 to 90, so all seats were contested.

In March 2007, Labour gained a seat from the Liberal Democrats in a by-election in Speke Garston ward. In the May 2007 council elections, the Liberal Democrats lost 4 seats to Labour, leaving the council make-up as Liberal Democrats 51, Labour 35, Liberals 3 and Greens 1.

Labour then won a second by-election in Warbreck ward in September 2007.

In May 2010, the Labour Party, led by Joe Anderson, gained control of the council for the first time in 12 years.[9] In May 2011, Labour increased their majority on the Council making 11 gains.

At the May 2012 elections, Labour won 27 seats and the Liberal Democrats, Green Party and Liberals 1 each. This made the composition of the Council 72 Labour (after one Councillor became an independent), 9 Liberal Democrat (after a defection to the Labour party), 3 Liberal, 2 green and 2 independents.

In the May 2014 elections, the Labour party won 27 seats, the Green party won 2 seats, and the Liberal party won 1 seat. This made the composition of the Council for 2014/15: 78 Labour, 4 Green, 3 Liberal Democrat, 3 Liberal, and 2 independent.

In the 19th and early 20th Century the council was run by the Conservatives, whose policies were responsible for Liverpool leading the way in many areas of social reform, for example the provision of the first council-housing in Europe. Liverpool was one of the last cities in the UK in which the Labour Party gained control, which occurred in 1955. The Conservatives were able to briefly regain control in 1961, until 1963, and again in 1967 until 1972.[20]

The council has switched numerous times between Liberal Democrats control and Labour control since its reconstitution in 1974, with two periods of no overall control.[21]